5 Ways to Stand Above the Competition as a Property Manager

A huge part of being a property manager is learning how to market yourself and your company.

You have to do it twice, after all: once to your client owners, the property owners who allow you to look after their buildings, and once to your client tenants, who live in those buildings. For all that, you’re no “middle man.” Most of the minds sharp enough to succeed at investing in real estate aren’t really the same guys who want to get their hands dirty underneath a sink or spend their time chatting up the old lady with the seven cockatoos to convince her to pay the rent.

You’re the go-between who makes sure everyone gets as much of what they want as they can get.

Unfortunately, it’s rare that either side sees you in such a positive light, so mastering the art of marketing is part and parcel of the job. As you learn about marketing, you learn about a concept called the “USP,” or the Unique Selling Proposition. In short, it means, “What do you do differently than everyone else, and why does it make you better than them?” Or in even more easy terms: how do you stand out from the crowd?

Every business needs to have an idea of what makes them better than their competitors, but not many businesses actually have that idea. If you’re struggling to separate yourself from the crowd, here are four tips you can take to develop something outstanding.

5 Tips to Stand Out From the Crowd

1. Create Something Exclusive

Exclusivity sells — if you can describe to your clients and/or tenants something that you do that very few other people are doing, you create a firm “anchor point’ in their mind to hang their thoughts on.

Everyone is constantly competing for “price” and “customer service,” so you’ll have to come up with something that isn’t part and parcel of either of those.For example, perhaps you could offer the opportunity for tenants to pay their rent via an app or a mobile website. This appeals to tenants because it makes paying easy, and it appeals to clients because it means tenants pay on time more often. It’s also not something that many property managers are doing yet, so it presents the air of exclusivity.

2. Be Who You Are

When you sit down to brainstorm things you can do to stand out from the crowd, don’t try to become something you’re not. Consider your strengths, be authentic to what you (as an individual and as a company) do best, and above all, avoid insincerity.

If you’re not “green” by nature, don’t try to force-start a recycling program in your building. If you’re not tech savvy, skip out on the online rent payment. If you do something that doesn’t come off as genuine, you’ll end up chasing people away.

3. Build Anticipation

Whatever you create, spend the time to brainstorm some ways that you can whet your clients’ and tenants’ anticipation for that program. Oftentimes, the promise of a reveal is more effective of a marketing technique than simply laying out all of the details of a program or service up front.

In this case, you’re focusing mostly on the tenants — your clients tend to be more of the analytical, return-on-investment type who will respond better to a complete understanding of what you’re going to do for them.

4. Keep It Simple

A vast quantity of good ideas fail ultimately because they require too much effort. They sound good on paper, but when it comes time to actually implement some special program, it turns out that it’s more important to keep the normal flow of business flowing. Similarly, if an offering is going to be too challenging for a client and/or tenant to take advantage of easily, they simply won’t, and you might as well have never come up with the idea.

5. Be Consistent & Be Memorable

Very few property owners will hire you when they first encounter your marketing. The simple reason for this is that they’re usually contractually committed to one of your competitors.

So you want to be top of mind when they are thinking about switching companies. The only way to do that is by repeatedly exposing them to your company. They’ll more easily remember you, even with less repetition, if you can be memorable somehow. This is the reason people do crazy things in marketing!

If you can combine simplicity, authenticity, exclusivity, and anticipation consistently, while throwing in something to be memorable, your chances of standing out from your competition increase exponentially. Standing out means more business on both sides of the desk! 

What steps do you take to stand out — as an individual and as a company?

Let us know in the comments!

Source: http://www.biggerpockets.com/renewsblog/2014/09/27/5-ways-to-stand-above-the-competition-as-a-property-manager

Why Now Is The Time To Buy Scottish Real Estate

Scotland’s decision to stay in the United Kingdom will drive growth in the local property market. Both sellers and buyers had been sitting on the fence for the past 18 months, but look set to return in large numbers.
As a result, local realtors expect a marked increase in activity, especially at the upper end of the market, which has traditionally been fuelled by wealthy incomers from England and abroad.
All forecasts point to a rise in local housing values across the next few months, followed by another one in 2015 and by further rises in the next five years. This means now could be a very good time to bag a Scottish home, before the price tag goes significantly up—so here is a selection of great Scottish properties currently available for sale.

Source: http://www.forbes.com/sites/carlapassino/2014/09/19/scotland-no-vote-why-now-is-the-time-to-buy-scottish-real-estate

Top 5 Reasons To Be An Investor Right Now

So I ran across this great article on Realtor.com last month. It was geared towards homeowners and explaining why NOW is the best time to a home. But after reading the article I came to the following – OMG – these are compelling reasons for INVESTORS to get into wholesaling and rehabbing investments deals – NOW! Here is the article that I read and see for you self why you should be actively real estate investing:

Five Compelling Reasons to Buy a House Right Now

“Buying a house is a highly individual decision—and a local one—but current trends are creating a favorable situation for many would-be homeowners. Interest rates are low, employment is rising, home prices—in most markets—are still well below their peaks, and rents are through the roof. Every family and each individual has various factors affecting the ability and the decision to buy a home. If you live in a market where studio apartments are $2,400 per month—while nearby condos sell for $300,000—it might make sense to buy a house instead.

1. Interest Rates Are Still Low

Mortgage interest rates are still low—for now.
A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5% rates next year. As interest rates increase, so do your monthly payments.
A $300,000 house at 4.16% with 20% down would have a monthly payment of $1,168. With a 5% interest rate, that payment increases to $1,288.

2. There’s More Inventory

As more houses enter the for sale market, prices stabilize.
“Inventories are at their highest level in over a year, and price gains have slowed to much more welcoming levels,” said Lawrence Yun, Chief Economist at the National Association of REALTORS®.
The upside is consumers now have more choices, if they are looking at existing homes.
New homes are another story: Yun says new construction needs to double its current production to meet market demand.

3. Home Prices Are Going Up

Home prices are rising.
The median price of an existing home was $223,300 in June, or 4.3% higher than June 2013. That’s the 28th consecutive month of year-over-year price gains, and economists expect that trend to continue. However, we are still at least 20% off the peak prices of 2006.
“Attempting to buy a home when the market is at its lowest point—or to sell at the peak—is tricky,” said Jonathan Smoke, Chief Economist for realtor.com®.
He compares it to trying to time the stock market.
“You might get lucky one or two times, but overall, timing the market does not work,” Smoke added. “It all points to purchasing power, and that’s a reflection of price and interest rates, which will both be higher in the future.”

4. Rents Are Sky-High

If you live in a big city, then you know rent is astronomical. In San Francisco, many people are spending 42% of their monthly income to pay the rent. Nationwide, rents are rising at a 4% annual clip.
It’s not unusual to see adults rooming together in expensive cities like New York, San Francisco and Chicago, but everyone needs his or her own space at some point.
Buying a home would lock in your monthly payment and stabilize your finances with a fixed-rate mortgage. This is, of course, assuming you don’t live the San Francisco area, where the average price of a home is $1 million.

5. Employment on the Rise

Perhaps nothing is as important to the financial stability you need to buy a home as steady employment. The U.S. economy is finally adding jobs—about 200,000 new jobs per month.
The next generation of home buyers—the Millennials—has been particularly affected by the nation’s job slump. Saddled with student loans and tight lending restrictions, many in this generation have been living with their parents to save money until the economy picks up.
If your employment prospects look good these days and the other four factors check out, then it may indeed be the right time for you to buy a home of your own.”

Source: http://www.reiclub.com/realestateblog/top-5-reasons-to-be-an-investor-right-now

Real Estate Still UK's Largest Investment Asset Class

As a result of budgetary changes in March 2014, more pensioners are investing in residential property as part of their pension pot than ever before.
Drawn to the asset by the fact that real estate has shown to be the best performing asset over the past 30 years, pensioners are exercising their freedom to choose investments that will generate the healthiest income in later retirement.
With life expectancy in the UK at an all-time high and rising annually, pension pots have been running out prematurely and not providing the income expected which has made retirement financially difficult for some.

Real Estate Out-Performs Other Asset Classes Year-on-Year

However, since the changes increasing numbers of savers have been seeking alternative forms of investment to fund their retirement. Property investment has provided many retirees with a secure source of regular income and has removed the risk of funds running out during retirement.
Residential property has proven to be an asset that out-performs every other asset class consistently year-on-year. Property also grows in value over time and as such, makes the perfect investment to hold on to for as long as possible. An asset like residential property will provide a much stronger, more secure income over the course of retirement.
British pensioners have also been increasingly turning towards equity release which allows them to raise funds on their property without moving home, freeing up capital to re-invest in residential property and increase their income during retirement.

Property Prices Driven by Owner-Occupier Market

A key attraction of residential property to long-term investors is that the income stream from housing is linked to wage growth and can offer investors an even better hedge to their liabilities than commercial property which is more closely linked to the slower growing retail price growth (RPI) and other property market indicators.
There are also more bargains to be had with residential investments as they are generally sold at a discount to vacant possession value. This represents the amount that would be achieved if the property were sold vacant on the open market to an owner-occupier.
In other words, residential property prices are driven by the owner-occupier market and do not correlate to demand from residential property investors. If at the point of purchase the property is let on an assured short-hold tenancy, the value of the asset will be discounted.

More Value for Money with Residential Property Investment

Reduced affordability in the UK has also impacted the residential property investment sector as increasing numbers of pensioners purchase properties specifically to rent out to their offspring or assist in the purchase of their first home to get them on the property ladder.
Although there has been widespread criticism, it is much easier to raise mortgage finance on a property that is not going to be owner-occupied. Loan to Value (LTV) is also at a higher level for buy-to-let mortgages with lower deposits payable.
This makes the market a very cost-effective way of providing homes to younger family members while generating an income and increasing capital values for an existing pension pot.

Source: http://www.ipinglobal.com/ipin-live/407289/real-estate-still-uks-largest-investment-asset-class

The Importance of Being a Genuine Person In Real Estate

Real Estate investing is a numbers game. For anyone that has ever thought about purchasing just one property, all it takes is a few quick calculations and you’ll begin to see the dollar signs $$$.

It’s pretty simple math too. I don’t know anyone that doesn’t enjoy cashing checks each month and really feeling their investments pay off. Just like with any investment vehicle, you need to weigh the risk and the more money you invest the higher the potential return!

People ask me all the time “How do you find such great deals? I also want to buy similar properties.” For this I ask “What are you looking to achieve and what is your end goal?” I mean, if all you want is a check each month there are many other investment opportunities that can provide just that. So many see Real Estate investing as an easy alternative to other financial products, for anyone who thinks this, I give a word of caution.

Warning!

Yes, it is simple math. Yes, you can make a lot of money.

Yes, it is the best thing I have ever done in my life and so rewarding AND I have made a lot of money. I emphatically ask: Do you like people? Not just people, but strangers? Are you committed to developing long term relationships? Do you enjoy being fully responsible (well mostly) for the conditions in which another family will be living? Would you get yourself out of bed at 2am to go fix someone else’s broken toilet only to find that they caused the problem and not even get a “Thank you”?

I have met so many investors that got into Real Estate only looking at the numbers and completely ignoring the people factor. Folks, people are responsible for making those numbers work. They pay each month so we can feel good about cashing the checks. Many of the great deals I find come from those same investors that didn’t think about building relationships with their tenants and where only focused on the figures. They couldn’t stand the interpersonal aspect side of the business. They provided little communication and where unresponsive to maintenance issues because they just didn’t care about the tenants, only the “return.”

When you have a property and accept a tenant you are assisting those individuals to provide for their basic need; shelter. Now don’t get me wrong, this IS a business and if they stop paying, you need to be firm and find the best solution for all parties. You’ll need to check your emotions at the door for some of the similar heart wrenching personal issues I have dealt with over the years, but even at those times you can only do so much.

In Conclusion

I have learned that the majority of people respect themselves and are prideful of their residence, even if they don’t own it, they pay up every month as long as you keep your end of the bargain. Part of that agreement is being able to communicate with them, at times help them out, and even sparing a few moments to share a laugh.

In Real Estate, you’re not required to be friends however, you are rewarded if you’re friendly! Above all, YOU MUST LIKE PEOPLE to build a sound and sustainable investment portfolio. A property is just a building, the people pay the rent.

Are you a people person? Do you focus on building trust and relationships?

I’d like to hear your comments below and thanks for reading!

Source: http://www.biggerpockets.com/renewsblog/2014/08/22/importance-genuine-person-real-estate

How To Flip Houses Like Steve Covey

Steven Covey is a well known self-improvement guru famous for writing “7 Habits of Highly Effective People”. He gave us seven simple principles that we can use to achieve success in life and business. Is it possible to apply his principles to house flipping?

His seven core habits are applicable to house flipping but one of these habits particularly stands out; “begin with the end in mind”. 

How The Begin With The End In Mind Habit Applies

It’s common knowledge that making a profit on house flipping is not easy but when you know exactly what it is you want to accomplish, you eventually end up having a laser-like focus that eventually concludes with you making a profit.

Numbers can break or make your house flips. Knowing how to do the math is not the hard part; the hard part is determining the correct numbers to use. In order for you to be able to accomplish this, you need to do a fair amount of research and assistance from your house flipping team.

The moment you learn how to flip houses with the end in mind, you will start making profits.

Is What You Pay For The House Important The Most Important Number In House Flipping?

While this is a very important number, what you pay for the house is not the most important number. Rehab costs are also not the most important.

The most important number is the After Repair Value (ARV) which drives all the other numbers. The After Repair Value is “the end” you should have in mind and you should use it to drive everything you do in house flipping.

Almost all the projections that you will make during the house flipping process will be based on the ARV. If the ARV is right, then every other single projection will also be right and your profit margin will be great.

Here’s How You Begin With The End In Mind In House Flipping

1. Find A Great Real Estate Agent

A great and qualified real estate agent can do a comprehensive market analysis and give you a more accurate ARV. Since we have already established that ARV is the most important number, you need to find a real estate agent that is good at their job.

A good real estate agent will look at properties in the area that have already been sold and not the ones that are for sale. This is because properties that have already been sold will help them determine how much your property can sell for.

2. Communicate Your Plans To Your Agent

Communication is important because it ensures everyone is rowing in the same direction. Finding a good agent is not good enough if you do not communicate effectively with them. They have to be 100% with you on the same page. Your house flipping team has to also be on the same page with you.

Don’t sit behind a computer and send out emails or communicate via phone alone. Get out there and talk to your house flipping team.

Other Tips On ARV

It Doesn’t Hurt To Get A Third Opinion

It doesn’t hurt to get a second or even third opinion from another agent. You can never be too careful when determining ARV.

Hire A Paid Appraiser

You might think this is another added expense but it doesn’t compare to the cost that you will incur when you gauge all your projection off a wrong ARV.

Research

Make Google your best friend and use it to double check after repair values. It’s not advisable to determine your final ARV off internet information but you can use it to double check. In addition, you can conduct a comparative market analysis.

Conclusion

Be wary of the broker who tries to inflate the ARV just to get your business. This is why it is important to get a second opinion from another expert broker. If you begin your house flipping process with the end in mind, you will be setting yourself up for success. If you use the above tips, you will have a highly successful house flipping career.

Source: http://houseflippingschool.com/flip-houses-like-steve-covey

Live in a multimillion-dollar home for $2,500

The Starres in front of their $1.3 million dollar
Showhome in Carlsbad, Calif.

The Starres aren't movie stars, but they live like it -- for a fraction of the cost.

As home managers, Calvenn and Crystena Starre rent a $1.3 million home in Carlsbad, Calif., for just $2,500 a month -- about a third of what it would cost normally.
They're "hired" by Showhomes, a Nashville company that helps sell high-end homes. It preps the homes to look "lived in"... by finding people to actually live in them, at a very discounted rate.
Currently, there are 200 home managers, who reside in the home until it's sold (it usually takes about three to six months). They watch for any maintenance issues and make the home look desirable (food in the fridge, clothes in the closet) for prospective buyers.
But not everyone can get the gig -- Showhomes' acceptance rate is about 40%. Residents must undergo online background checks, including criminal and rental histories. They're typically white-collar professionals who are in a city temporarily, newly divorced or, in the Starre's case, a family of five looking for a quick and easy rental.


With Showhomes, the Starres didn't need to make a long-term commitment -- they could leave their furniture in storage until they figured out where they wanted to live long term.
But what was a temporary move became a way of life. Over the past two years, they've lived in five different Showhomes -- ranging from $900,000 to $1.3 million in value -- all in the San Diego area. The amenities have included everything from tennis courts to pools.
"It's a way to live in a really inexpensive way," said Matt Kelton, chief operating officer of Showhomes, which has 58 franchises in 18 states.
But it's not all a walk in the park. Showhomes has a number of restrictions for home managers.
"You can't be a smoker, you can't have a bunch of pets, no religious items -- things that can deter [a buyer] one way or another," added Kelton.
Personal items like family photos, sports teams and political paraphernalia are also prohibited. And then there's the prospective buyers who could be surveying their home at a moment's notice.
"We give up certain parts of our lives [for] the reduced rent," said Calvenn.

They also have to move every time a place sells, with just about a month's notice, and maintain a spotless home in the meantime.
"You have to keep it clean and model home-ish," said Crystena Starre, a stay-at-home mom to her three kids. "We got to teach the kids, 'We need to put things away.'"
For homeowners, Showhomes is piece of mind that costs just .5% to 1.25% of the list price (this can vary and decreases the longer a home stays on the market).
Radiologist Bernie Schupbach first worked with Showhomes in Fox Valley, Ill., when he put his home on the market six years ago.
"I was living probably 20 miles away, and it was hard to get down to check on it," explained Schupbach. "There was always ongoing concern of a water pipe breaking or animal infestation or vandalism in the interim between visits."
Schupbach didn't have to worry about finding and vetting renters -- or about the state of his home before it sold.
"We only communicated with [the home managers] if there was a problem," said Schupbach.


Schupbach's home was on the market for several years during the recession. It ultimately sold for around $500,000, and he had such a good experience that he employed Showhomes to stage his new home for buyers (which is the other half of the company's business).
And while Kelton says one man was a home manager for 15 years, moving from home to home, the majority do it for a much shorter period of time because of the "nomadic lifestyle" it requires.
As for the Starres, the wealth of knowledge they've acquired from living in different San Diego neighborhoods has helped them narrow down where they want to put down roots. They soon plan to purchase their own home.

 Source: http://money.cnn.com/2014/08/11/smallbusiness/showhomes-rent/index.html

How to Get Higher Rents, the Hard Way!

If you are like most landlords or property managers, you are always looking for the highest rents, after all, no one I know shoots for the lowest rents.

But there comes an amount where the rent exceeds the value of the property.  Once that happens, you would think that you would not be able to find a renter.  This is not the case.

Economic theory states that as prices go up, demand decreases.  This is true.  If you do not believe it, cut your rent prices in half and see what happens.  You will have people lined up around the block to take your rental.

Solid renters know what they want in a rental.  They know what buildings in the area they want to live, and what amenities they want.  They will know the walk score of a place, how close it is to their work, how much arts and culture are close by.

Quality Renters Know Value

A solid renter picks their home based on location, and also on value.

The value is based on what they can afford, and the ‘substitution theory’ in that paying more or less will substitute different features and amenities.  Nowhere in their equation is any thought to the fact that their application for housing might get rejected.  They know they can throw a dart at the map and choose the closet apartment if they wanted to.

I define a solid renter as someone with at least 3.5x the rent in income.  This is someone with at least an average credit score, somewhere north of ~650.  Their last 10 years on the criminal side will only have a couple of parking tickets, and likely not even that.  They will not have any evictions.  All past landlord references, for what they are worth, are positive.

Low Quality Renters Have Less Choice

The low quality renter has a completely different attitude.

They need to live where they can.  They do not care about amenities; they care about move in date.  Something is making them move, and it is not their job, or the lack of an art gallery close by.  They need to move because they are probably being forced out.

As a landlord, you can specialize on these renters.  They are in a tight spot, just as many sellers are when investors scoop up foreclosure properties.  These are distressed renters.  They need to move, and say they are willing to pay.

Their criminal backgrounds might not be as good as you would like, and their credit score less than par, but they are not choosy.  They need a place, and generally need it fast.  They will move into a place that is not maintained, or cleaned.

Make no mistake; these are high risk class C or D tenants.  Like any investment, you need to get a return based on the extra risk these tenants present.  You need a higher rent than a typical class A or B tenant.  Even if your rent is 100% paid by a government authority, you are taking on more risk.

Does Higher Rent Mean More Profit?

A class C or D tenant will be more work, and you should get at least an additional 10% higher rent with them.

On a $1,000 a month rental, that’s an extra $100 that goes right to the bottom line.  All of your other expenses stay the same, except possibly maintenance and legal fees.

If you are looking to sell, higher rents mean a higher sales price.  Whether or not you will be more profitable is the $64,000 question.  Low quality tenants generally mean less profit.  Can you cover your increased maintenance costs and added expenses with the higher rent?

If you have a property manager, the lower quality renter is more wok for the PM.  It is more calls, more chasing down rent, more work to turn the unit.  But it is a higher commission for the PM. I often think that people hire a PM have so much trouble with renters because of this very reason.  The PM is maximizing their own revenue and getting a lower qualified renter to move in. It is more work to find the ‘sweet spot’ of the correct rental price than take in a less that qualified renter.  They make more, and you are probably making less.

So, if you really want higher rents and are OK with a higher risk for higher returns, raise your rents.  If you want the slow, steady and boring approach to profits, make sure your rents are aligned with the market, and you hold out for quality tenants.

Have you ever raised your rent too high, and saw a decline in tenant quality?  Have you ever seen a rental you wonder how the owner ever rented a dump like that?

Be sure to leave your comments below!

Source: http://www.biggerpockets.com/renewsblog/2014/08/17/get-higher-rents-hard-way

3 Reasons To Love Investing In Real Estate.

There are many reasons to invest in real estate. I’ve been investing in cash flow properties for about 10 years now and wanted to share my personal 3 Reasons Why I Love Investing in Real Estate:

1. Invest Locally

Every time you buy a single family home, duplex or apartment complex -  you are investing in your local area. You are improving your local city and neighborhoods one house at a time and providing housing solutions for the people in your local market.

2. Cash Flow

Cash flow is my personal favorite reason for investing in rental homes and apartments. Investing in hard assets that produce income is a huge benefit of buying and holding investment property. Your tenants pay your mortgages and your cash left over after all your expenses is your net cash flow.

Imagine making $300 per month in net cash flow and not having to work much to produce it.  If you invest in 15 houses, you could create $4,500 of monthly cash flow while enjoying all the other benefits of single-family homes.

3. Multiple Exit Strategies

A number of exit strategies can produce great results.  You can be a landlord and enjoy rental income; you can use lease options as your exit strategy; you can sell with seller financing and enjoy income from your note, or you can sell the house outright to a new buyer (flip it).

I can personally say that it’s been very rewarding and profitable investing in various types of rental real estate deals. I think the flexibility that it affords me to be home with my kids is the best reason of them all- for me!

How about you? What are your top reasons for investing in real estate?

Source: http://www.reiclub.com/realestateblog/3-reasons-to-love-investing-in-real-estate

The Power of Your Network in Real Estate

I was chatting with Chris Winterhalter, a successful apartment building investor and active participant in the Bigger Pockets forums.

He talked about some of the advances he made in his investing career, and many of them were tied to people he met. In fact, he met his current business partner at a real estate investing conference. That partner owned a commercial construction company and wanted to expand into apartment buildings. Chris was a wholesaler/flipper and wanted to get into apartments. A perfect match.

This conversation made me reflect on what networking has accomplished in my career but also made me think about what I could be better.

We Can Accomplish More with Others, Then We Can Accomplish on Our Own!

I had an apartment building under contract, due diligence was completed, the appraisal was completed and we were 14 days away from closing.

Everything looked good. Until I got a call from the loan underwriter who informed me that the local bank I was working with changed their mind about the deal. “The loan committee didn’t like the area the building was in”, was all he said.

Wow, really ?!? Two weeks before closing?

Fortunately I had been working with 4 other lenders, got them to present me with term sheets, and picked the best one. The second best one looked pretty good at this point! Sure enough, that bank jumped on it, we transferred the appraisal and they closed on it in 23 days.

I would have been stuck had I not been networking with other brokers.

The Power of Your Network

While I get the majority of deal flow from commercial real estate brokers, occasionally I get one from someone in my network.

One time I got a smaller building through a wholesaler from whom I had previously bought houses to flip. He knew another wholesaler who had this build under contract and was looking to sell the contract. The deal didn’t work out, but it looked promising for a while.

I do better when I have mentors. They give me confidence I didn’t have before. They might say “buying a 100 unit isn’t so bad. So you need to raise $1M, so what? It’s not that hard, I know you can do it!” Even if they don’t directly help, they’re confidence in me lets me expand my own comfort zone so that I, too, start believing I can do it.

I can Improve with My Networking

My friend Jonathan is my model in what it means to be a good networker: he’s constantly introducing people to each other.

He spends time with people, he calls them regularly. He asks you what you’re looking for and then keeps his eyes for something that could help you. He doesn’t ask “what’s in it for me?” but “what can I do to help you?”

I’m outgoing enough, but I’m not intentional enough with networking. I need to be more like Jonathan and find ways I can help others in my sphere of influence each and every day.

The lesson here is that we need to be more intentional with our networking. Put it on your list each week. Make that phone call, schedule that lunch, follow up with conversations, attend that investment meeting. Then figure out how you can help people achieve what they’re striving for.

What do you do to network with others? What can you do better?

Be sure to leave your comments below!

Source:  http://www.biggerpockets.com/renewsblog/2014/08/11/power-network-real-estate

10 Things to Look Out for When Buying an Older Home

Older homes possess an allure that cannot be found in a new home. The mesmerizing architecture of an older home and its distinctive character may appeal to you at first sight, but do not forget that not only are older homes reminiscent of the years gone by, but they also bear the brunt of time. Older homes need careful inspection and maintenance – a task which may not suit all buyers.

The first step to successfully buying an older home is to weigh your options and decide what features could potentially turn out to be deal-breakers. What do you look for in a house? What purpose would your house serve and what kind of furnishings do you intend to use? Answering questions like these will help clear up any confusion and give you strong points for or against buying any home.  Deal-breakers could vary from excess expenditure in repairs to the location of the house. Bear in mind that the level of commitment required to own an older home can be greater than owning a newer home and being a “renaissance man” may come in handy.

1. Careful inspection of the disclosure

Buying a home involves a lot of communication between the buyer and the realtor or seller. If you have a realtor to represent your interests, it does not mean that you have no part in the dealings or communication. A realtor would help narrow down prospects that best suit your requirement. However, careful research on your part is a must and could save you a lot of money and time.

To start off, you should be a well-informed buyer so be sure to ask lots of questions regarding the condition and history of the property. Understanding and inspecting previous repairs and replacements could help you come to a decision on whether the major concerns are manageable or feasible. Disclosure statements from sellers are an obligation and should be carefully inspected to make sure that you are completely aware of the issues and problems which could affect your purchase.

2. Cost of homeowners insurance

Insurance is essential to safeguard your home against damages that result from accidents. Additional policies could be added to insure the house against damages resulting from natural calamities. There are several forms of insurance which covers various levels of protection to suit the interests of the owner. Insurance agencies may be skeptical when it comes to insuring an old house and you may end up paying more than you expect. Have a candid conversation with your insurance agent about the home so you can be certain of the cost of insurance before buying the house and avoid any surprises down the road.

3. Foundation

Older homes are more likely to have problems when it comes to the foundation. A clear inspection of the basement will reveal possible cracks and shifts in the frame. Cracks are a bad sign and may indicate permanent, serious damage to the structural integrity of the home. Old houses are known for their strong foundation, but with time they may have suffered serious wear and tear. A thorough inspection should reveal serious troubles with the foundation – a definite deal-breaker.

4. Electrical wiring

Older homes may need updated wiring, especially considering the high demands of our electronics hungry society, and rewiring an entire house may turn out to be painfully expensive no matter how much you love the beautiful wood work and ornamental designs. The cost and effort of rewiring the house should be considered before you finalize the deal. If a house has three-pronged plugs, it hints at a modern grounding. Presence of other modern safety upgrades such as reset buttons on outlets could also mean upgraded wiring. However there are many problems that may go unseen and hence, do not forget to have a professional inspection done.

5. Plumbing

If the house has original plumbing, then depending on how old it is, there is a good chance that it’s outdated and will require work down the road. In case of previous repairs or replacement, the installations should be inspected. Leaks and clogging are a common problem with old houses. Just because the plumbing has been upgraded, it does not guarantee that it is functional or won’t pose future problems.

6. Heating and cooling systems

If you are accustomed to central air and an even temperature throughout your home, you may be in for a surprise. Replacing the HVAC in an older home can not only be expensive but it may also not deliver the immediate changes to heating and cooling that you are familiar with in newer homes. Older fixtures may also cost you a lot in terms of utility bills. Older homes can come with radiators which require fuel oil and may not be practical in the long run. It’s also a good idea to see a years’ worth of utility bills

Older homes may very well have a properly working furnace but make sure the person you choose to inspect your home before the sale has experience with older homes and heating and cooling systems.

7. Roof

If the roof has been previously worked upon, then it is a must to check for signs of leakage and make sure that any changes to the roof line have the proper structure under the roof. Moldy wood, drips and water stains are a clear indication of trouble. If the original roof is still in place, then there is a good chance that some work will be required before long – which translates to more time and expenses.

8. Windows.

Old homes come with old windows which may offer poor insulation. If a previous reconstruction has widened window frames, then the quality of the work must be assessed. Improper extensions and tampering might cause problems such as rigid windows and collapsing of the frame under severe circumstances. Also look for any leaks around the windows, both original and/or replacement windows.

Keep in mind that replacing all the windows in a 3,000 square foot home will cost in the 10s of thousands of dollars.

9. Extensive repair work

If the house requires extensive repair work, it is going to drain a lot of your money and time. The return on investment may or may not be worth the money (remember the movie “The Money Pit” ;). Is it really practical to take on such a huge responsibility? If you’re handy with tools and love working on projects, this may be a great opportunity for you but if you’re more like me, not the handiest guy in the world, this home that you love my be the end of you or at least your marriage J. You may feel an emotional connection to the house, but is it going to be worth the effort?

10. Compatibility between the house and your existing fixtures and appliances

Household items were different back in the day and definitely less demanding of the house. To ensure that you do not have to invest in a brand new set of furniture and appliances, make sure that your existing sets are compatible with the house in terms of size, proposed utility of appliances etc.

In spite of the hurdles and anomalies, older homes are often worth the effort. They are unique and elegant with a personality of their own that will add a lot to your pride of ownership!

Source: http://mlsmaps.com/mls-listings-info/index.php/10-things-to-look-out-for-when-buying-an-older-home

Read my lips: Smelly, messy houses don't sell

Clearly my message is not being heard.

I’ve emphasized repeatedly the importance of “staging” to make your home appealing to the highest number of potential buyers. That is, declutter, depersonalize and set a trap for buyers, paying attention to how your house appeals to all five senses.

After showing 21 Orange County houses in the last three days, it’s clear too many home sellers have not gotten the message.

Rather than go on another rant, I figured you might enjoy the specific details about what I’ve seen recently. You tell me if these people have any interest in getting their house sold for as high a price as possible in as fast a time as possible.

The smelly

Actually, this week there were two winners in the smelliest house on the market category.

Both had me at the front door. Pungent, acrid, heavy, offensive, nauseating, and eye-wateringly smelly houses. The reek of garlic, grease, and spices strong enough to permeate every pore of the property.

I suggested my clients might consider a thorough washing.

The messy

At least one open suitcase, with the contents on display, in every single room, including the dining room, living room and family room.

Dirty laundry piled up in the hall way. A queen-sized mattress sitting on its side, leaning against the upstairs hallway banister, conveniently blocking the view of the downstairs entry way.

Remnants of breakfast decorating the kitchen counter. Dishes piled up in the sink – not in any harmonious fashion and devoid of any distinguishable color scheme. Books strewn about the floor, abandoned for other pastimes.

Personal care items scattered willy-nilly on the bathroom counters.

Dog poop resting on the front lawn -- and on the front porch.

A hot mess.

The suspicious

“Oh, yes, just give me a minute to get my dog, and we’ll take a walk.”

This seller started with extra points for understanding that you have to leave when your house is being shown. Sure, we can wait.

So after a few minutes, she says the coast is clear and in we go. After a brief walk-through, we realize there is a three-wick candle burning in every room. Living room, kitchen, dining room, all three bedrooms.

Something that makes you want to say, “I wonder what they are trying to cover up? Last night’s smelly food? Mold growing in the bathroom? Or the stinky dog?”

None of the preceding being a good answer.

The embarrassing

“Oh, excuse me! I thought this was a closet!” my client exclaimed after opening a door. But instead, it exposed someone using the bathroom.

Certainly this is an effective demonstration of the indoor plumbing, but an embarrassing encounter nonetheless.

Source: http://www.ocregister.com/lansner/houses-630341-smelly-lips.html?page=1

Top Ten Issues Affecting Real Estate

Stoke and Liverpool £1 homes: Are schemes a success?

Liverpool mayor Joe Anderson handed the keys to Jayalal Madde in exchange for £1

It's 18 months since Liverpool launched its £1 homes scheme, so why has no-one moved in while bargain-hungry homeowners in Stoke-on-Trent are rushing to buy the same reasonably-priced roosts?

Liverpool City Council launched its pilot scheme to buy a house for £1 in a blaze of publicity.

The council offered the chance to buy one of 20 empty homes for the small sum if the new owners pledged to refurbish them and stay for at least five years.

But almost a year since the first buyer was handed the keys to his new house in Granby, he has still not moved in.

Meanwhile, a similar scheme in Stoke-on-Trent is almost complete, with 31 out of 35 homes occupied.

The £3m project in the Cobridge area, funded by the government's Empty Homes Scheme, mainly involves two-bedroom terraced properties.

There, the council lent buyers the £30,000 needed for renovations and used their own contractors to do the work.

"I know the state these homes are often left in," explained project manager Zainul Pirmohamed. "We couldn't expect 31 people who are novices to try and tackle that.

"And thank goodness we did it this way. Once we've gone back to brick, the amount of extra work we have found has been phenomenal.

"We've been able to tackle those issues, we've got a big specialist pool of staff.

"These people who are buying haven't got the money to throw towards it, so we knew they would not have been able to do it."

'Devil in the detail'

  Why are £1 homes in Rutland Street, in Hanley, Stoke (top), more popular than homes in Cairns Street, in Liverpool (bottom)?

 

By Claire Hamilton, political reporter, BBC Radio Merseyside

Liverpool's homes for £1 scheme was launched with a huge fanfare last year.

And rightly so. A great way of helping people get on the property ladder and at the same time revitalise neglected neighbourhoods.

The devil (and delay) appears to have been in the detail.

I wonder if the council repeats the scheme in future whether it would be a better idea to follow Stoke's lead - lending the refurbishment money to the buyers and then carrying out the work with their own contractors, rather than leaving first time buyers with the daunting prospect of a massive restoration project which could go well over budget?

Gavin Pierpont is happy he will be mortgage-free in 10 year's time

It also means the homeowners will have repaid the loan in 10 years, a thought that delights Gavin Pierpont.

"I'll be mortgage-free by the time I'm 36," he said.

"Not renting and mortgage-free, a bonus on all fronts."

Contractors have finished his new house and it just needs decorating.

"It's bare plaster but it's all ready for painting, it's just getting round to doing it until its move-inable.

"It's up to me to just make it a home."

His neighbour Rachel Nieto is set to move in with her boyfriend Chris and said borrowing from the council worked for them.

"We wanted to move in together but it's quite hard to get a deposit, this just seemed like a really good opportunity to be able to do it," she said.

Liverpool's pilot scheme is part of a plan to bring 179 empty homes back into use in the Granby, Picton and Arnside Road areas of the city.

Properties have been empty for many years and have been stripped of pipe work, fixtures and fittings.

'Have a go'

New homeowners have to show the council how they will fund the estimated £35,000 renovation costs - within a 12-month deadline - a possible reason why only five families have exchanged contracts so far.

Ann O'Byrne, Liverpool's cabinet member for housing, said they were "absolutely overwhelmed" when nearly 3,000 people expressed their interest, of which 600 met the criteria to grab a £1 house.

But she added "once they'd seen the level of work involved, they just thought it was too much for them," and many dropped out.

Married father-of-two Jayalal Madde, is the first new homeowner, currently renovating his house on Cairns Street in Granby.

Following delays with insurance companies, he is now hoping to move in within a couple of months.

"We had delays but my wife and daughters are very excited to move in," he said.

Liverpool City Council has admitted it has not been an easy ride, but stressed the scheme is a pilot and lessons are being learned.

A further £6m has been promised to bring another 1,000 empty properties back into use across the city.

Ms O'Byrne said: "It did take longer than we expected, but we've learned from that and we're making much more progress.

"We'll be looking at how we actually do some of that structural work to enable people to come in and do more of the cosmetic work to bring the properties back into use.

"We're trying different models to encourage people to get on to the property ladder and just have a go."

Source: http://www.bbc.co.uk/news/uk-england-28641045

Protecting your real estate assets

Estate planning and asset protection go hand in hand. After all, planning for the distribution of wealth is useless if you have no wealth to distribute.

But, asset protection for real estate is particularly challenging, because it’s the only asset that can’t be moved. Many asset protection strategies involve relocating assets to domestic or foreign jurisdictions that offer greater creditor protection. But unlike other assets — such as cash, bank and brokerage accounts, stocks and bonds, cars, boats, jewelry, art and other collectibles — real estate can’t be removed from the jurisdiction in which it’s located. Let’s take a closer look at several strategies for protecting your real estate assets.

Giving gifts

One of the most effective ways to protect real estate from creditors is to give it to your children or other family members, either outright or via a trust. Doing so places the real estate beyond the reach of your creditors and may also reduce your estate tax liability. The disadvantage of this strategy, however, is that you’ll lose all economic interest in and control over the real estate.

Further, although transferring assets may protect you from your creditors, the assets would now be subject to the claims against the person or entity to whom the assets were transferred. Keep in mind that gifting real estate — as well as the other asset protection strategies discussed later — won’t protect you from your existing creditors if a transfer constitutes a “fraudulent conveyance.” A fraudulent conveyance is a transfer of property made with the intent to hinder, delay or defraud creditors. The best way to avoid a fraudulent conveyance claim is to transfer property as early as possible, before any creditor claims arise.

Protecting your home

There are three strategies that can protect your home against creditors:

Tenancy by the entirety. About half the states allow married couples to hold title to their principal residence as tenants by the entirety. Similar to joint tenancy, tenancy by the entirety also protects the residence during the marriage against claims by a creditor of one of the spouses. It doesn’t protect the residence against a couple’s joint liabilities.

Homestead exemptions. A few states offer unlimited homestead exemptions, which protect a principal residence from creditors regardless of whether it’s owned by a couple or a single person.

Qualified personal residence trust (QPRT). A QPRT allows you to transfer a principal residence or vacation home to an irrevocable trust — thereby placing it beyond the reach of creditors. Unlike an outright gift or transfer to a regular trust, however, you retain the right to live in the home during the trust term. At the end of the term, the property is transferred to your children or other beneficiaries. QPRTs can also be used to reduce gift and estate taxes.

Protecting other real estate

For business and investment real estate, an effective asset protection strategy is to transfer title to a limited liability company (LLC) or limited partnership (LP). So long as the transfer isn’t a fraudulent conveyance and the LLC or LP is structured and operated properly, the entity shields the real estate from creditors’ claims.

A creditor with a judgment against an individual owner (a member or limited partner) can’t satisfy that judgment against the entity’s assets. Generally (but not in all cases), the creditor’s only remedy is to seek a “charging order,” which permits the creditor to intercept any distributions made by the LLC or LP to the debtor. So long as the entity doesn’t distribute the real estate or other assets to the debtor, the creditor’s efforts to collect are frustrated.

Plan early

If you’re exposed to significant liability risks — either personally or professionally — it’s a good idea to have an asset protection plan. And the earlier you implement your plan, the more likely it is to succeed.

Source: http://www.jdsupra.com/legalnews/protecting-your-real-estate-assets-03666

How to Think & Work Like a Successful Real Estate Investor

Just the other day I was reading an article about millionaire mentality. I shared the same article with my friends on Facebook where I got the standard likes. I don’t know if anyone actually read it, as the article was nothing original or profound but it was correct.

Being successful is not an end result of work. Success in anything, is the continued outcome of constant work and relentless focus. Every one of us has the same amount of time each week, 168 hours. That is 7 days. It’s what we do with it, what you do differently with those hours that changes the outcome.

I have nothing special over any of you. I quit school at 14. I never attended college. I swept floors on constructions sites to make a living. I was just like so many you will meet. I worked for a pay check, used up my hours laboring and got some cash for the hours spent. I soon realized though that my life was going nowhere. I wanted and needed more!

Success is All In Your Mindset

Today, I am a successful Real Estate investor— because of the way I think. The way I changed myself and my habits enabled me to use time to my advantage and move ahead of my competition. Everything I do and everyone that I allow to enter my life align with that purpose.

It’s not just to make money. Money can be spent, it can be lost, devalued or stolen. My focus is on a lasting contribution to my circle of friends, family and partners. Money, thankfully, does come along with that contribution! Like any investment, when I use my time to accomplish something I expect a greater return. I have walked away from many people and deals.

Not because I wasn’t going to profit, but because the return on the investment being “my time”, was below expectations and had a higher possibility of risk.

When I think about millionaire mentality, more importantly, what I do in my life to keep that focus, is curtail to my success. I wake up every day earlier than most, 6-6:30am at the latest. I change my voice mail greeting with the new date.

My Daily Routine

I read several positive articles about Real Estate topics and leadership.

I pop out the notepad and update my daily to-do list and areas of focus. I check online forums for new deals and urgent emails. By 7am, I am in the office updating and responding to social media. By 8am, my daily appointments are set and I meet with or call my business partners to relay information.

Over the course of the average day, 100 phone calls, several face to face appointments, 100+ emails and a dozen or so property evaluations. I try to not work more than 12 to 13 hours each day and possibly take a half day off on Saturday.

Because so much Real Estate is listed on Sundays and most people are free to meet, I am typically working the whole day. At the end of the day I review my list and reply to messages to prepare for the next morning.
This takes commitment and a daily desire to meet your goals, always reaching toward the end result and the better the results, the harder you must work.

I get up every day knowing what I need to do to be successful for myself. I don’t need anyone to validate that or remind me of it, I just do it because I commit myself to the task. I use all the time and resources necessary to focus on meeting my goals.

I ask you, “What are you doing to make millions of dollars? What are you doing to be successful?”

Be sure to leave your comments below!

Source:http://www.biggerpockets.com/renewsblog/2014/08/02/think-work-like-succsessful-real-estate-investor

Millionaires See Real Estate as Top Investment for 2014

U.S. millionaires see real estate as the top alternative-asset class to own this year, according to Morgan Stanley. (MS)

About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.

Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009, research firm Green Street Advisors Inc. reported today. The S&P/Case-Shiller index of home prices in 20 cities is up 24 percent from its 2012 low.

“After a year where the Standard & Poor’s Index rose 30 percent, some millionaires are moving money out of traditional, long-only strategies to find outperformance, and turning toward alternatives such as real estate and private equity,” said Gary Kaminsky, a vice chairman at Morgan Stanley Wealth Management in New York. “Sophisticated, high-net-worth investors are much more concerned about losses.”

Interest Rates

Wealthy investors see stocks getting expensive and interest rates staying stable or even declining over the next couple of years, Kaminsky said in an interview at a conference for Tiger 21 investors last week in Scottsdale, Arizona. That’s why they are looking more closely at alternatives including real estate for returns and income, he said.

Tiger 21 members, who have at least $10 million in investable assets, increased their average allocation to real estate last year to 21 percent as of the fourth quarter from 19 percent in the first three months of 2013, according to a separate study released by the New York-based group last month.

Will Ade, a Tiger 21 member, said real estate is a particularly attractive investment as stocks show vulnerability in 2014. The S&P 500 has fallen more than 4 percent this year, while developing-country stocks have tumbled on concern that the outlook for economies is worsening.

‘Lame’ Bull

“We had a great bull run last year,” Ade, a 60-year-old geologist, said in an interview today. “I don’t know if the bull is dead, but it certainly is lame right now.”

This year may be the tail-end of attractive investments in property before interest rates rise, said Ade, who has made his money finding oil companies and private investors to fund the drilling of wells. He said he is trying to purchase residential real estate in Miami right now.

“The really good real estate deals are getting harder and harder to find,” Ade said. “Once interest rates start to go up, whether it’s farmland or single-family dwellings there’s going to be huge downward pressure on real estate.”

Foreign Buyers

The Manhattan high-rise condominium buildings One57 and 432 Park Ave., where units have gone under contract for more than $90 million, are evidence of the faith that the very wealthy have in real estate, said Mitchell Roschelle, real estate advisory leader at PricewaterhouseCoopers LLP. Such properties have also attracted international buyers.

Wealthy foreigners have bought high-end U.S. properties for their safety and because they’re denominated in dollars, the world’s reserve currency, he said. This helps domestic millionaires maintain the value of their property investments.

“It creates competition, which drives the price up for everybody,” he said. “The sellers have multiple channels to sell into. That gives you more liquidity.”

Self-storage properties are among commercial real estate investments wealthy individuals are buying, Kaminsky of Morgan Stanley said. Retail shopping centers are seen as less attractive as more consumers shop online through companies such as Amazon.com Inc., he said.

Chilean Fund

Morgan Stanley Wealth Management surveyed 1,004 U.S. investors ages 25 to 75, with least $100,000 in assets, during the fourth quarter of last year. A third of them had more than $1 million.

BigSur Partners, a Miami-based wealth-management firm, has been helping some of its wealthy clients, who usually have at least $50 million, work with institutional investors such as a Chilean pension fund to invest in commercial real estate, said Chief Executive Officer Ignacio Pakciarz. Deals include an office building in Princeton, New Jersey, he said.

“We don’t feel there’s a lot of value in emerging-market bonds, high-yield bonds and highly rated fixed income,” Pakciarz said.

Owning the real estate is attractive because of the expected appreciation of property value and stream of rental income, as well as better control and supervision over the investments, he said. The firm has also bought office properties in Pittsburgh and Boston, multifamily residences in Texas and some industrial buildings for clients, and is looking for more opportunities this year in real estate purchases or lending, he said.

This article was written by  Margaret Collins and David M. Levit.

In 2014 Real Estate in Michigan should be called the comeback kid.  Values in Metro Detroit are up double digits in each region.

What do you think 2015 will bring? (please comment below)

Source: http://reiaofmacomb.com/millionaires-see-real-estate-as-top-investment-for-2014

Commercial Property Prices Pick Up Steam in May

Good news for commercial property investors: prices are on the rise.

After months of sluggish growth, U.S. commercial property values grew 2% in May, according to the Green Street Commercial Property Price Index, released Thursday.

The index, which focuses on higher-quality properties around the country owned by real estate investment trusts, is up 4% year-to-date, and 9% above its 2007 high.

The increased momentum comes as REITs have enjoyed something of a rally in the first half of the year, reversing a 2013 slump as worries about rising interest rates have subsided. The Dow Jones Equity All REIT Total Return Index is up more than 15% since January, compared with less than 2% for the Dow Jones Industrial Average.

“It’s likely the trend continues,” Peter Rothemund, an analyst at Green Street Advisors, said in a news release. “Real estate pricing currently looks attractive.”

Source: http://blogs.wsj.com/developments/2014/06/05/commercial-property-prices-pick-up-steam-in-may

8 Pieces of Advice Newbies Can’t Afford to Ignore

I met a client last week who told me something that really touched my heart.

He said “Amanda, looking back on the last 5 years of investing in real estate I realized that I have made so many mistakes along the way that were so costly. Does that happen to everyone and what could I have done to avoid those mistakes?”

His comment struck a chord with me because I was in those same shoes. I think that as we look back on investing (and life in general) there are always going to be things that we wish we had known beforehand.

The fact that we made mistakes or bad decisions does not necessarily mean that we did something wrong or that we missed the target by some fault of our own. It is just a part of growing. In fact I can say that I have never met an investor who didn’t make any mistakes.

So instead of talking about taxes or finances this week, I think it would be helpful to talk about some common investing mistakes that I see often, and if you are a newbie investor, then hopefully one or  more of these points below can help prevent you from making a bad investment move.

The 8 Pieces of Advice Newbies Cannot Afford to Ignore

The following are 8 pieces of advice that newbies need to pay attention to.  These will help prevent you from making terrible investment decisions and put you on the path to becoming successful earlier than most.

1. Take the Time to Learn:

Learning from the mistakes of other investors is likely the best way to leverage your time. Instead of re-creating the wheel or making costly mistakes, learn from others who have done this before.

2. Know What’s Important:

A smart investor focuses on what his or her return will be.

One of the best pieces of advice I received from a mentor when I first started investing was “don’t fall in love with the dirt”. As hard as that may be, focus your energy on the numbers behind the deal and don’t let that beautiful master bathroom lead you astray. Analyzing an investment is not the same as buying your dream home.

3. Take Action:

You can read books or attend seminars all day long but there is no better way to get into real estate than by taking action.

Get your feet wet by making offers, speaking with investors, and analyzing deals early on. Don’t waste too much time sitting on the sidelines.

4. Be Realistic:

You undoubtedly have read books or heard about how easy it is to get into real estate with no money and no experience.

Behind every successful investor are the stories of their sweat, tears, and failures that pre-empted their success.  Know that you will make some mistakes along the way and that it’s okay.

Accepting that mistakes can happen and that it is a natural part of investing can help reduce the anxiety associated with pulling the trigger on your first deal.

5. Get Your Team in Place:

None of us can understand all there is to know when it comes to investing, nor do we have the time to do everything that needs to be done for our properties.

Just as we leverage the bank’s money, we can also leverage the experience and knowledge of others around us. From attorneys and accountants to property managers and appraisers, leveraging your advisor’s experiences and expertise can help you to avoid common investing mistakes.

6. ListenTo The Right People:

If you are using a realtor to find your properties make sure they belong to the National Association of Realtors, because then at least you know they are mandated to adhere to strict ethic codes.

The right realtor can also help you look for the best properties. Listen to fellow successful investors and you may be surprised by how many great recommendations and sources for reliable information you can find.

7. Build a Business Not Just a Portfolio:

You should view this venture as a business and approach it with realistic goals.

To make sure that you treat your real estate as a business, it would be to your benefit to create a business plan that provides details as to how you will run your business over the next 1-10 years.

8. Stay On Top of Your Credit Score:

We have all heard of no money down real estate but let’s face it, one of the cheapest forms of funding for real estate is still bank money.

Many lenders require 700+ FICO scores and want a healthy debt-to- income ratio. Keeping an eye out on your credit score can help you to obtain cheap financing.

Would any of you seasoned investors add anything to this list? 

Be sure to leave your comments below!

Source: http://www.biggerpockets.com/renewsblog/2014/07/24/8-pieces-advice-newbies-cant-afford-ignore

How to Start Investing In Real Estate Doing The Things Nobody Else Wants To Do

Getting deals is challenging these days. All that means is you have to be like Avis and Try Harder.
And if you’re new to real estate investing, real estate wholesaling is one of those ways to try harder by doing the things other people are unwilling to do. Real estate wholesaling is ideal for beginners or people who do not have enough money to kick-start their real estate investing career. There are many ways to go about real estate wholesaling; some of which may not be conventional. Today I will focus on the unconventional ways.

What Kind Of Property Does A Real Estate Wholesaler Look For?

Have you ever come across listed property with the words “sold as is?” In most cases, those words mean exactly that; sold as is. The lender or the banker is usually in another state and has not done any repairs to the property. In most situations, homeowners who are unable to pay their mortgage sometimes intentionally destroy the property or simply do not take care of the property. This is the kind of property that wholesalers look for.

The 3 Ways Of Finding Real Estate Deals

1. Cold Calling

People hate cold calling but cold calling when wholesaling can be your friend. Cold calling is a technique that many would be wholesalers are afraid of trying out because they fear the unknown. The worst thing that can happen when you pick up the phone to call a property owner is that they might hang up on you. If this happens, you can always call them back and say “we must’ve gotten disconnected”. Your persistence will show just how determined you are but remember there’s a thin line between being persistent and being annoying. Use your best judgment to avoid creating the impression that you are a prick. You should be prepared psychologically for rejection because the more people you call, the higher the number of rejections you are likely to get. However, you will also increase your chances of getting great deals through cold calling. A great cold calling strategy is to call vacant home owners. You can find their contacts at the Town Hall Registry of Deeds website. Once you find their phone number, call them and ask them if they are interested in selling their home. Most people have no idea that they have other options other than foreclosure. You can increase your chances of landing a deal by informing them of any other options.

2. Door Knocking

While this is definitely the most time-consuming process, it’s the most effective of all. Fro new wholesalers, doing it this way is a great way for you to stand out from other wholesalers – simply because most of them just don’t do this! The reason why it is effective is because it involves making personal contact with the seller. If you do not want to meet the seller directly, you could send someone else to do the job for you. You can agree to give them a 20% cut for every deal that goes through. This is super effective as the both of you are incentivized. When you go about your door-knocking, I always advise people to leave some kind of leave behind with the property owner. A leave behind is a small book that contains testimonials from your previous clients, a little something about your business, who you are, etc. This is a great way to show sellers you are serious and you have credibility. Make sure it has your phone number, your email, your name and your business name. This way, when the seller is ready and willing, they can contact you back. Sometimes, it’s better to go door knocking with a partner. A female-male combination usually increases your chances of making a connection with the seller. As mentioned before, this is a time-consuming process so you need to keep track of places you have visited to avoid revisiting the same places and wasting time.

3. Farming The Area

Farming the area starts with picking a target market. Next, drive by that neighborhood and look for run down homes. Make sure to bring a pen and a notebook with you to note down the addresses. From there, head back to the office and do an extensive research on those property addresses.
Once you have all the information, you can follow-up with a cold call or do some door knocking. You never know; you might just find a vacant, run down property with a motivated seller. One of the best ways to do this is to drive home from wherever you are in a slightly different route that you normally go. Don’t worry about getting lost because the GPS on your phone will get you back on track quickly.
If you are looking to leave your job and house flip or invest in real estate full-time, this is an ideal way of utilizing your daily commute to further your real estate investing aspirations is one fell swoop.

Conclusion

When you utilize these three techniques, you can and will find real estate deals that other wholesalers might miss out on. Wholesaling is not easy and it does take some time but the payoff is worth it.
The plain fact is that most people want to get into real estate investing never actually get started. If you set yourself apart from the other wholesalers and do the things that others either won’t or simply aren’t willing to do, your real estate career will most likely kick off to a good start.

Source: http://www.biggerpockets.com/renewsblog/2014/07/21/start-investing-real-estate-things-nobody-else-wants